Utilizing service entities as part of your service operating model

October 2013

At a glance

As insurers evaluate and re-design their service operating model, they consider the pros and cons of establishing a separate legal entity service company. Insurance companies are particularly well suited to move certain activities away from their insurance legal entities, but the business case for doing so should be compelling.

As insurers evaluate and re-design their service operating model, they should determine if a separate service company would be advantageous. Insurance companies are particularly well suited to move certain activities away from their insurance legal entities, but the business case for doing so should be compelling.

This paper explores the pros and cons of establishing a separate legal entity service company, addresses what insurers should consider during the development process, and describes the implications of establishing a (non-insurance) service company.